Bondholders hit out at 'forum shopping' by borrowers

Shopping around

shopping-bags-countries
Shopping around: struggling companies are moving their HQ to avoid punitive bankruptcy regimes

European corporate bond investors have expressed concern that struggling companies are increasingly moving abroad to avoid paying back creditors.

Over the past year, a number of issuers have moved their operations to different jurisdictions in order to take advantage of more flexible bankruptcy laws – a process known as “bankruptcy tourism” or “forum shopping”. Market participants have called for stronger EU regulation to tackle the issue.

Europe already has cross-border regulation governing

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